Sharjah National Oil Corporation plans to continue exploring gasfields in the emirate and is “hopeful” of discovering more reserves amid growing energy demand.
“We started our ambitious exploration programme in 2016 by launching a seismic survey and it was successful by first gas discovery jointly with Eni in 2020,” the company's chief executive Khamis Al Mazrouei told The National on the sidelines of the Energy Markets Forum in Fujairah on Wednesday.
State-owned Snoc partnered with Italian oil company Eni for the discovery of the Mahani gasfield in 2020. The new onshore well of natural gas and condensate was the emirate's first discovery in more than three decades.
In May last year, Snoc announced the discovery of Al Hedebah field near Al Sajaa industrial area, the emirate’s fifth onshore field, with promising quantities of gas reserves.
In the first half of this year, Snoc produced the first well, “and we continue our drilling and appraisal programme on [Al] Hedebah field”, Mr Al Mazrouei said in an interview.
“We continue our journey. We are hopeful [of more gas discovery],” he added. “This is why we have our ambitious exploration programme and it is supported by high gas demand in Sharjah and the Northern Emirates.”
The company did not reveal details on its current production of gas but said output has gone up by 20 per cent after production begin at Al Hedebah field this year.
“In recent years, we have seen the UAE GDP grow … and as the GDP has been increasing, the demand for fuel and gas, the engine for the economy, is also increasing,” Mr Al Mazrouei said.
The UAE economy continues to grow amid diversification efforts. In the first quarter of 2025, UAE’s real GDP rose 3.9 per cent year-on-year to Dh455 billion, according to preliminary estimates released by the Federal Competitiveness and Statistics Centre.
Non-oil GDP posted 5.3 per cent growth, reaching Dh352 billion, while oil-related activities accounted for 22.7 per cent of GDP.
Last month, the UAE Central Bank raised its 2025 growth forecast for the country’s economy from 4.4 per cent to 4.9 per cent.
Snoc is looking to expand its exploration activity across the UAE, as well as outside of the Emirates, said Mr Al Mazrouei.
“We have a mandate to explore locally and internationally. So, our first step to go outside Sharjah was with RAK Gas in their exploration efforts in Ras Al Khaimah,” he said. “Now, we are evaluating options other than RAK, inside the UAE and outside.”
He added that the company is also currently evaluating opportunities in Oman, Africa and in Asian countries.
“Exploration programmes are capital intensive. So our spend has increased and will continue to be on the [higher side],” Mr Al Mazrouei said, without disclosing how much the company plans to spend in the coming years.
The funding for the company's exploration is mainly done through partnerships with other companies, using Snoc's own equity, support from the government and loans from banks.
“We will continue to do the same. We will continue to have a partner, where we will share the technology and where we will share the funding,” Mr Al Mazrouei said.
